Texas Instruments Incorporated (NASDAQ:TXN) experienced a significant decline in its stock value following the release of its third-quarter 2025 guidance, which fell below market expectations. The semiconductor manufacturer’s shares closed at $160.58 on November 10, 2025, marking a 24.53% drop in value over the past year. This downturn is particularly notable as the broader market, represented by the S&P 500 Index, posted an 8.1% gain during the same quarter.
In its recent investor letter, Madison Investments highlighted the fund’s performance, which decreased by 2.2% in Q3 2025. This underperformance was attributed to a market focus on short-term profits, causing the fund to lag behind its benchmark significantly. The letter detailed Texas Instruments’ contribution to this performance, noting that while the company reported solid revenue and profit growth, its outlook raised concerns among investors.
Texas Instruments reported revenue of $4.7 billion for the third quarter, which was in line with expectations and reflected a sequential increase of 7% and a year-over-year increase of 14%. However, the advisory firm indicated that the demand in the first half of the year may have been artificially boosted as customers rushed to place orders ahead of potential tariffs. Madison Investments stated, “The bottom five detractors for the quarter were Gartner, Fiserv, Texas Instruments, Liberty Broadband, and Accenture.”
Despite the recent challenges, Madison maintained a cautious optimism regarding Texas Instruments’ long-term prospects, considering that its end markets might still be at the beginning of an upcycle following a substantial downturn in the analog semiconductor sector. The investor letter noted that Texas Instruments is currently not among the 30 most popular stocks held by hedge funds, showing a slight decrease in interest from the previous quarter, with 68 hedge fund portfolios holding shares at the end of Q2 2025.
Madison Investments also expressed a preference for certain artificial intelligence stocks, suggesting they might offer greater potential for higher returns in a shorter time frame. The firm emphasized that while Texas Instruments has inherent risks as an investment, it believes there are more attractive opportunities in the current market.
In conclusion, Texas Instruments’ mixed quarterly results and below-expected guidance have contributed to a decline in its stock price, reflecting broader market dynamics and shifting investor sentiment. As the company navigates these challenges, its future performance will be closely monitored by analysts and investors alike.
